Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Bottom-Up

<ul>
<li>
Context: The <a href="https://www.smartkarma.com/entities/jb-hi-fi-ltd" target="_blank" data-smartkarma-citation="entities:555:1" rel="noopener">JB Hi-Fi (JBH AU)</a> vs. <a href="https://www.smartkarma.com/entities/wesfarmers-ltd" target="_blank" data-smartkarma-citation="entities:1104:1" rel="noopener">Wesfarmers  (WES AU)</a> price ratio has deviated more than three standard deviations from its one-year average, presenting a potential relative value opportunity.</li>
<li>
Highlights: Going long JB Hi-Fi (JBH AU) and short Wesfarmers (WES AU) targets a 6% return.</li>
<li>
Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.</li>
</ul>



Context: The JB Hi-Fi (JBH AU) vs. Wesfarmers  (WES AU) price ratio has deviated more than three standard deviations from its one-year average, presenting a potential relative value opportunity.

Highlights: Going long JB Hi-Fi (JBH AU) and short Wesfarmers (WES AU) targets a 6% return.

Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.


JB Hi-Fi (JBH AU) Vs. Wesfarmers (WES AU): Statistical Arbitrage as Spread Hits Three-Sigma

Financial News, Analysis and Data, FNArena

FNArena

Financial News, Analysis and Data

Online financial media company focused on Australian equities, with a global perspective

<ul><li>Another earnings result 'beat' by JB Hi-Fi was not enough to prevent the shares from selling-off on the day.</li><li>Over-reaction?</li><li>The debate is alive.</li></ul>

Another earnings result 'beat' by JB Hi-Fi was not enough to prevent the shares from selling-off on the day.Over-reaction?The debate is alive.

JB Hi-Fi's Re-Rating Triggers Valuation Dilemma

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>JB Hi-Fi Limited has presented a mixed financial performance for the first half of the 2025 fiscal year, showcasing its resilience in a competitive and challenging retail environment.</li><li>The company reported a solid increase in total sales across its key divisions, namely JB Hi-Fi Australia, JB Hi-Fi New Zealand, and The Good Guys.</li><li>Total sales in JB Hi-Fi Australia grew by 7.2%, reaching AUD 3.88 billion, while JB Hi-Fi New Zealand exceeded expectations with a 20% rise in sales to NZD 202.5 million.</li></ul>

JB Hi-Fi Limited has presented a mixed financial performance for the first half of the 2025 fiscal year, showcasing its resilience in a competitive and challenging retail environment.The company reported a solid increase in total sales across its key divisions, namely JB Hi-Fi Australia, JB Hi-Fi New Zealand, and The Good Guys.Total sales in JB Hi-Fi Australia grew by 7.2%, reaching AUD 3.88 billion, while JB Hi-Fi New Zealand exceeded expectations with a 20% rise in sales to NZD 202.5 million.

JB Hi-Fi Limited: Initiation of Coverage- Why Its Recent Growth In Tech & Appliance Sales Is Just the Beginning!

Equity Derivatives

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jb-hi-fi-ltd" target="_blank" data-smartkarma-citation="entities:555:1" rel="noopener">JB Hi-Fi Ltd (JBH AU)</a> announced HY 2025 results this morning. Price increases 5.5% in early trading but gains were lost by noon.</li>
<li>Sales Up 9.8% to A$ 5.67m; EPS up 8.0% to A$ 2.611; interim dividend up A$ 0.12 to A$ 1.70. Results are in-line/slight beat.</li>
<li>Volatile trading can make for opportunities. Investors can speculate on a positive Post Announcement Earnings Drift (PEAD) or consider option strategies, as implied volatility remains elevated.</li>
</ul>



JB Hi-Fi Ltd (JBH AU) announced HY 2025 results this morning. Price increases 5.5% in early trading but gains were lost by noon.
Sales Up 9.8% to A$ 5.67m; EPS up 8.0% to A$ 2.611; interim dividend up A$ 0.12 to A$ 1.70. Results are in-line/slight beat.
Volatile trading can make for opportunities. Investors can speculate on a positive Post Announcement Earnings Drift (PEAD) or consider option strategies, as implied volatility remains elevated.


EQD | JB Hi-Fi (JBH AU) Faces Volatile Trading After Earnings Announcement

<ul>
<li>
Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.</li>
<li>
Highlights: Currently twelve pair trade opportunities across four markets and five sectors persist.</li>
<li>
Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.</li>
</ul>



Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.

Highlights: Currently twelve pair trade opportunities across four markets and five sectors persist.

Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.


Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (1 Dec)

Australia

JB Hi-Fi Limited is a music and electronic goods retailer in Australia.  The Company operates stores at sites located in most Australian States.  Products include consumer electronics, car sound systems, music and DVDs.

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JB Hi-Fi Ltd (JBH AU)

JB Hi-Fi (JBH AU) Vs. Wesfarmers (WES AU): Statistical Arbitrage as Spread Hits Three-Sigma

Long JB Hi-Fi vs. short Wesfarmers targets a potential 6% return amid valuation tailwinds. Essential for quantitative traders seeking mean...

Gaudenz Schneider

JB Hi-Fi's Re-Rating Triggers Valuation Dilemma

Another earnings result 'beat' by JB Hi-Fi was not enough to prevent the shares from selling-off on the day. Over-reaction? The debate is alive.

FNArena

JB Hi-Fi Limited: Initiation of Coverage- Why Its Recent Growth In Tech & Appliance Sales Is Just the Beginning!

JB Hi-Fi Limited has presented a mixed financial performance for the first half of the 2025 fiscal year, showcasing its resilience in a...

Baptista Research

EQD | JB Hi-Fi (JBH AU) Faces Volatile Trading After Earnings Announcement

JB Hi-Fi Ltd announced HY 2025 results with price initially up 5.5% but gains lost by noon. Volatile trading presents opportunities for investors...

Gaudenz Schneider

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (1 Dec)

Statistical methodology identifies twelve pair trade opportunities across four markets and five sectors, offering unique insights into relative...

Gaudenz Schneider

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

JB Hi-Fi (JBH AU) Vs. Wesfarmers (WES AU): Statistical Arbitrage as Spread Hits Three-Sigma

Long ​JB Hi-Fi vs. short Wesfarmers targets a potential 6% return amid valuation tailwinds. Essential for quantitative traders seeking mean...

Gaudenz Schneider

JB Hi-Fi's Re-Rating Triggers Valuation Dilemma

Another earnings result 'beat' by JB Hi-Fi was not enough to prevent the shares from selling-off on the day. Over-reaction? The debate is alive.

FNArena

JB Hi-Fi Limited: Initiation of Coverage- Why Its Recent Growth In Tech & Appliance Sales Is Just the Beginning!

JB Hi-Fi Limited has presented a mixed financial performance for the first half of the 2025 fiscal year, showcasing its resilience in a...

Baptista Research

EQD | JB Hi-Fi (JBH AU) Faces Volatile Trading After Earnings Announcement

​JB Hi-Fi Ltd announced HY 2025 results with price initially up 5.5% but gains lost by noon. Volatile trading presents opportunities for investors...

Gaudenz Schneider

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (1 Dec)

​Statistical methodology identifies twelve pair trade opportunities across four markets and five sectors, offering unique insights into relative...

Gaudenz Schneider

Long JB Hi-Fi vs. short Wesfarmers targets a potential 6% return amid valuation tailwinds. Essential for quantitative traders seeking mean...

JB Hi-Fi Ltd announced HY 2025 results with price initially up 5.5% but gains lost by noon. Volatile trading presents opportunities for investors...

Statistical methodology identifies twelve pair trade opportunities across four markets and five sectors, offering unique insights into relative...